Should a Startup Outsource their Software Development?

Startups have to be agile and able to handle a multitude of tasks, usually simultaneously. Outsourcing some of these tasks can free up time, allow a startup team to work more efficiently, and help you save money, provided you choose the right components to outsource. Custom software development companies offer a range of services such as technical consultation and quality assurance, making them suitable for startups seeking customized software solutions. Since the savings of time and money can be considerable, outsourcing large projects like software development makes sense for many brands.

How can you tell if working with a dedicated software development company is right for your startup? Consider your current team, your skillset, and the timeline you are working towards to determine if this cost-efficient approach to software development is right for you.

Software Development Outsourcing Creates a Level Playing Field

A common misconception is that software development outsourcing is just for big startups with large budgets. Outsourcing can benefit a leaner, more streamlined startup by freeing up the time and talent that the founders bring to the table. Since outsourcing allows any brand to access skilled teams, (that they don’t have to hire, train and employ full-time), this process creates a truly level playing field and ensures a new brand can compete in even the most competitive of fields.

A competitive edge is appealing to most startups, particularly those that are in industries that are packed with other contenders, but other factors matter as well. Here’s what to consider when you decide if you should work with a software development company or bring your startup project inhouse:

How Much do Costs Matter?

You may have a generous VC or impressive working capital, but if not, then outsourcing’s lower costs may be very appealing to you. The right software development company can provide you with services that rival or improve upon what an in-house team can provide, but at a much lower cost.

When you have an in-house employee, you pay for their time, whether they are working on your project or not. Once you commit, you need to find them work to do, or risk having salaried employees on hand that are not contributing to the success of the company as much as possible. Employees cost more than just their salary or hourly wage, benefits, insurance, and other perks are needed as well.

When you outsource your startup’s software development, outsourcing companies handle these tasks – and cope with the legal side of hiring, paying, and managing workers, providing cost-effective solutions. You’ll also have access to a full team of workers instead of a sole employee. Even the most dedicated employee takes time off, gets sick, or goes on vacation – and your development could stall while that happens. Working with a team ensures your development keeps moving forward.

Easy Scalability

The typical startup moves swiftly and your needs may change rapidly. Scalability is an important factor when it comes to any service or task you are paying someone for – whether you are paying an employee or outsourcing. When you can’t easily scale up or down, you end up paying for more services than you use (or not being able to access needed services because you lack the ability to keep up with demand.

Outsourcing is designed to be scalable, since a software development company needs to be able to meet the needs of brands of all sizes. This allows your brand to access the services it needs, when it needs them, without overpaying or buying more than you need. The dedicated team model allows for high integration with internal processes and ongoing support through the project lifecycle.

In the high-pressure world of the typical competitive startup, agility and scalability are essential for any brand that needs to keep up. Working with a software development brand removes scaling issues from your list of things to worry about and ensures you always have access to the assets.

When you keep things inhouse, and come towards the end of a frantic development cycle, you’ll be left with employees and assets that may not have much left to do. These will be burdensome and difficult to deal with; if you outsource, you simply scale down the project as rapidly as you need to, resulting in streamlined costs and boosted efficiency.

Outsourcing Software Development Saves Time

You may be able to find money from several sources, but you and your key partners and team members have a limited amount of time available, even if you work on your startup during all your waking hours. Outsourcing frees up not just the time needed to complete a task, but all the time you would otherwise have to spend tracking progress, managing employees, following up on issues running a dedicated inhouse team.

A project manager acts as a liaison between the client and the development team, ensuring effective communication and adherence to schedules.

When you outsource, you save time on communication as well — from robust reporting tools that reveal where your project is in real time to working with a single point of contact, you hand over the complex management tasks to someone else. You simply check progress, evaluate results, and enjoy the benefits of “done for you” work.

In many cases, a software development company may have teams working around the clock, with multiple skilled employees working to complete your project 24/7. Most startups just can’t afford that level of intense development work or that timeline.

Whether you need to compete in a field packed with big brands, or you need your startup to run efficiently and with agility, outsourcing your software development can help you focus on all of the key tasks you must do to bring your dream to fruition.

Learn more about using outsourcing to make the most of your startup endeavor and to boost both productivity and efficiency. We have full stack developers who can help you determine what outsourcing your software could for you and the difference it could make for your brand.

Access to In-depth Tech Knowledge and Experience

Outsourcing software development provides startups with access to in-depth tech knowledge and experience that may not be available in-house. By partnering with a software development company, startups can tap into the expertise of experienced developers who have worked on similar projects and have a deep understanding of the latest technologies and trends. This can be particularly beneficial for startups that are looking to develop complex software solutions that require specialized skills and knowledge.

Moreover, outsourcing software development allows startups to access a wider range of technologies and tools that may not be feasible to implement in-house. This can include access to cutting-edge technologies such as artificial intelligence, blockchain, and the Internet of Things (IoT), which can provide a competitive edge in the market.

Evaluating Your Startup’s Needs

Before outsourcing software development, it’s essential to evaluate your startup’s needs and determine what type of outsourcing model is best suited for your business. This involves assessing your project requirements, budget, and timeline, as well as identifying the skills and expertise needed to complete the project.

Startups should also consider their core competencies and determine what aspects of software development can be outsourced without compromising their competitive advantage. This may involve identifying areas where outsourcing can provide cost savings, improved efficiency, or access to specialized skills and expertise.

Selecting an Outsourcing Partner

Selecting the right outsourcing partner is critical to the success of your software development project. Startups should look for a partner that has a proven track record of delivering high-quality software solutions, a strong understanding of the latest technologies and trends, and a commitment to transparency and communication.

When evaluating potential outsourcing partners, startups should consider factors such as their experience working with similar projects, their technical expertise, and their approach to project management and communication. It’s also essential to assess their cultural fit and ensure that they share your values and vision.

Managing the Outsourcing Process

Managing the outsourcing process requires careful planning, communication, and project management. Startups should establish clear goals, objectives, and timelines, as well as define the scope of work, roles, and responsibilities.

Regular communication is also essential to ensure that the outsourcing partner is meeting expectations and that any issues or concerns are addressed promptly. Startups should also establish a clear process for tracking progress, providing feedback, and making changes to the project scope or requirements.

By following these best practices, startups can ensure a successful outsourcing experience and achieve their software development goals.